1. Click to edit Master subtitle style samaf Medium Term Strategic Framework 2011 – 2014 Presentation to the Portfolio Committee on Economic Development 30 March 2011 11

2. Contents Mandate Vision, Mission and Values Key Deliverables over the Three Years samaf Products and Services Alignment of samaf to the New Growth Path Performance Targets Budget Challenges samaf Provincial Office Addresses 22

3. Mandate To create work opportunities and sustainable livelihoods through the facilitation and provision of affordable access to finance by micro, small and survivalist businesses for the purpose of growing their income and asset base. samaf is also required to act as a catalyst in the development of a vibrant micro-finance industry in South Africa. 33

4. Mandate Effectively this means that samaf must:- Facilitate the provision of affordable access to finance by micro and survivalist businesses; Extend financial and non-financial services to reach deeper and broader into the rural areas, informal settlement and peri-urban settlement of South Africa; Build a strong, effective and efficient wholesale (Apex) Fund; Contribute to a better quality of life; and Contribute towards a sustainable and vibrant micro financial industry in South Africa 44

5. Vision and Mission 55 Vision “To be a leader in developmental micro finance” Mission To provide developmental finance and non-financial services to Financial Intermediaries through: Mobilization of financial intermediaries; Wholesaling of funds; Development of institutional capacity; Lobbying and advocacy towards policy development; and Development of valuable partnerships.

6. Values The following values will underscore samaf’s behaviour as it strives towards the achievement of its mandate, vision and mission: Integrity - Dealing with stakeholders in an honest and ethical manner; Transparency - Ensuring compliance with best practice on the dissemination and sharing of information with all stakeholders and consulting with them to ensure comprehensiveness and buy-in to samaf activities; Professionalism - Adhere to specific defined norms and setting standards of workmanship, respect, and communication; Accountability - Taking responsibility for the decisions and actions, including allocation of powers and duties; High Performance - Excellent performance and satisfied customers that guarantee long term sustainability of the South African Micro-Finance Apex Fund. The relevant behaviour by staff to achieve the above values have also been developed. 66

7. Key Deliverables over the Three Years Provision of financial support to FI’s totalling R279m for on-lending R115m for capacity & institutional building support Establishment of 122 new Financial Intermediaries (FI’s) Funding of 193 FI’s Creation of 56 000 projected new jobs Diversified microfinance products to address the needs of the Financial Intermediaries Increasing visibility and awareness of samaf’s mandate, products and services Improvements in Information Technology Improved turn around times 77

8. samaf Products and Services 88 LOANS:USAGE:MINIMUM - MAXIMUM USAGE: Development Loans  Education loans  Housing loans  Emergency loans Consumption loans aimed at FSC’s and MFI’s for on-lending to clients (household) earning below R1 500 per month R 4 MillionR10 Million 2. Micro-enterprise Loans Micro – surviving generating activities with the total income of R3 500 per month INSTITUTIONAL INCENTIVES:USAGE:MINIMUMMAXIMUM 1.Fund To assist both MFI’s and FSC’s to be utilised for enhancing the institutional capacity, partial subsidizing of operation costs, development of reporting systems policies and procedures R 1 MillionR 5 Million 2.Saving formalisation & mobilisation fund To assist current and unregistered co- operatives, groups and clubs to formalise their registration with CIPRO and samaf and the overall operations capacity in order to grow N/AR200 000 Note: The above thresholds are under review to ensure relevance to the market that samaf serves

9. Alignment to the New Growth Path The performance objectives are aligned to the New Growth Path as defined by the Economic Development Department (EDD) and are as follows: Strengthening access to micro-finance for small enterprises Enterprise development: Promoting small business and entrepreneurship Eliminating red tape; Payment of small business suppliers within 30 days Spatial development: Extension of samaf offerings to remote and rural areas by working with the Provinces and Municipalities. Addressing key developmental goals for women empowerment and youth employment 99

10. Performance Targets 10 Measure 2011/122012/132013/14 Number% % % End-user borrowers Total borrowers22,11630,23343,190 Women17,69380%24,18680%34,55180% Men4,42320%6,04720%8,63920% Youth2,21210%3,02310%4,31810% Disabled4432%6042%8642% Rural13,79162%19,56465%28,81567% Semi-urban8,32538%10,66935%14,37533%

11. Performance Targets11 End user borrowers

12. Performance Targets12 End user borrowers

13. Performance Targets 13 Measure 2011/122012/132013/14 Number% % % End-user service loans Micro Enterprise19,42188%26,89489%39,02390% Housing1,5367%1,8496%2,2245% Education1,1595%1,4905%1,9415% New jobs created13, 100 17, 90025, 000 End-user savings Total active savers23,85128,41934,653 New savers4,5686,2346,982 Total savings book (R)17,958,42322,165,12326,379,053

14. Performance Targets14 End user service loans

15. Performance Targets 15 Measure 2011/122012/132013/14 Number% % % Funding support to FIs On Lending65,092,04088,924,500124,634,500 Capacity Building35,049,56038,110,50041,544,250 FI Repayment rate60%65%70% Portfolio at risk40%35%30% FI Retention 65%70%75% New FIs to be approved MFIs4108 FSCs323137

16. Performance Targets Funding Support to FIs

17. Performance Targets 17 Measure2011/122012/132013/14 FIs to be funded MFIs17 21 FSCs334956 Outreach to new communities546466 Capacity Building MFIs131018 FSCs141716 Financial reporting12 Needs assessment for end user Capacity Building 60% Complete80% Complete100% Complete

18. Performance Targets18 Measure2011/122012/132013/14 Capacity Building Design products to meet end user capacity building requirements 100% Complete Finance Unqualified Audit Report Payment of creditors within 30 days 30 days Information Technology Implementation of software to manage turnaround times Software Implemented

19. Performance Targets 19 Measure2011/122012/132013/14 Marketing Conduct client satisfaction survey- FIs0 10 Conduct client satisfaction survey- End user101 Printing of brochures in 11 official languages Brochures printed Profiling of samaf in the media27

20. Budget 20 2011/122012/132013/14 Expenditure61 302 00063 360 00066 985 000 Administrative Expenses20 835 00021 567 00022 592 000 Depreciation1 514 0001 706 0001 738 000 Personnel Costs33 987 00036 027 00038 189 000 Losses on Loans4 966 0004 060 0004 466 000 Transfers to FIs100 141 600127 035 000166 178 750 Grants35 049 56038 110 50041 544 250 Loans65 092 04088 924 500124 634 500

21. Challenges Sustainability of Financial Intermediaries (FIs) Capacity within samaf and the FIs Provincial spatial demographics Turnaround times 21

22. samaf Provincial Office Addresses22 Gauteng Provincial Manager: Ms Tsholofelo Molebaloa 108 Cnr Rissik and Fox Street 13th Floor Metropolitan Building Johannesburg,2001 Postal Address: PO Box 61008, Marshalltown, 2107 Tel: 011 838 5482 Fax: 011 838 5486 Email: North West Provincial Manager: Vacant Physical Address: Cnr University Drive and Provident Street Office no 229, 2nd Floor, NWDC Building, Mmabatho, 2790 Postal Address: Private Bag X58 Mmabatho 2735 Tel: 018 384 0766 Fax: 018 384 1963 Email: Mpumalanga Provincial Manager: Mr Sabelo Mamba Physical Address: 30 Brown Street First Floor, Nedbank Centre, Nelspruit, 1200 Postal Address: P O Box 3677 Nelspruit 1200 Tel: 013 755 2696 Fax: 013 752 7461 Email: Eastern Cape Provincial Manager: Vacant Physical Address: 58 Terminus Street, 7th Floor, SA Eagle Building East London, 5201 Postal Address: P O Box 9071 East London 5200 Tel: 043 743 5259 Fax: 043 743 5249 Free State Provincial Manager: Mr Tefo Lekutle Physical Address: Cnr Maitland and West Burger Street Bloemfontein 9301 Postal Address: Private Bag 20806 Bloemfontein 9300 Tel: 051 447 3510 Fax: 051 430 6470 Email: Northern Cape Provincial Manager (Acting): Mr. Jacob Gumbo Physical Address: Suite 2, Perm Building, Woodley Street Kimberley, 8301 Postal Address: P O Box 1972 Kimberley 8300 Tel: 053 832 5422 Email:

23. samaf Provincial and Head Office Addresses23 Western Cape Provincial Manager: Mr Mark Alard Physical Address: 2 Long Street, 9th floor, FNB Building Cape Town,8001 Postal Address: PO Box 7284, Roggebaai, Cape Town, 8012 Tel: 021 425 6774 Fax: 021 425 6776 Email: KwaZulu- Natal Provincial Manager: Mr Thanda Madlala Physical Address: 127 Johannes Nkosi Street Seda Ethekwini Durban,4001 Postal Address: PO Box 3983, Durban, 4000 Tel: 031 309 5850 Fax: 031 309 5893 Email: Limpopo Provincial Manager: Mr Patrick Mathoma Physical Address: 22 Hans van Rensburg Street 1st floor Suite no 2 Bonitas Building Polokwane 0699 Postal Address: P O Box 2938 Polokwane 0700 Tel: 015 291 5428 Fax: 015 291 5415 Email: Head Office Address 77 Meintjies Street, the dti group campus 3rd floor, block D (Kgwebong), Sunnyside, Pretoria, 0002 Postal Address: Private Bag x26, Sunnyside, 0132 Tel: 012 394 1479 Fax: 012 394 2479

24. Thank You 24